Through this deal, Bharti has exited the business in both Bharti AXA Life Insurance and Bharti AXA General Insurance
Reliance Industries has made its entry into the insurance business by agreeing to buy Bharti's 74% stake in its life insurance business Bharti-Axa. Through this deal, Bharti has exited the business in both Bharti AXA Life Insurance and Bharti AXA General Insurance.
This transaction is subject to negotiation and entering into legally binding agreements between RIL, Reliance Industrial Infrastructure (RIIL) and AXA and obtaining necessary approvals from IRDA1 and other relevant/applicable approvals.
On completion of the proposed transaction, RIL and RIIL would effectively own respectively 57% and 17% in both insurance companies and would become AXA's joint ventures partners in India. AXA would retain its current 26% shareholding and would continue to manage the day to day operations of the JVs.
The proposed agreement contemplates an option by which AXA would acquire from RIL and RIIL upto 24% shareholding in both the insurance companies in accordance with the applicable regulations as and when the FDI2 regulations permit such holding by AXA. Upon exercise of such option, RIL will effectively own 45%, RIIL will effectively own 5% and AXA the balance 50% in both the insurance companies.
RIL and AXA will join forces to create market leading life and general insurance businesses in India by leveraging their respective strengths and expertise.
In fiscal year 2011, Bharti AXA Life collected premiums of Rs7.9 billion and Bharti AXA GI collected gross direct premiums of Rs5.5 billion.
The monsoon system could cover the remaining parts of north-east over the next two days and then advance over remaining parts of south peninsula and many parts of east India, besides some parts of central India during the later half of the next one week, the India Meteorological Department said
New Delhi: The south-west monsoon is making smooth progress and is likely to remain active at least for the next two weeks, reports PTI quoting the weather office.
Since its onset on 29th May, the southern peninsula, where the monsoon is active, has received excess rainfall barring Marathwada region which has received normal rains.
"The cumulative seasonal rainfall for the country as a whole during this year's monsoon has so far been 17% above the Long Period Average (LPA)," the India Meteorological Department (IMD) said.
According to the IMD, besides covering the entire peninsular region, the monsoon could advance over most parts of central India and large parts of the east and north-eastern region by 24th June.
"An upper air cyclonic circulation is likely to develop in the North Bay of Bengal around 12th June and move inland.
Under its influence, rainfall activity is likely to increase over east India," it said.
The monsoon system could cover the remaining parts of north-east over the next two days and then advance over remaining parts of south peninsula and many parts of east India, besides some parts of central India during the later half of the next one week, the weather office said.
Subsequently, between 18th and 24th June, it could cover most parts of central India.
As of now, the performance of the monsoon is in keeping with IMD's April forecast of a normal monsoon season.
First new support for Nifty is at 5,415 and then at 5,350
We mentioned yesterday that Nifty has to stay above 5,480 for the bulls to have any hope. The Nifty went below it and bounced back. The Indian bourses opened range-bound on concerns about rising crude prices and ahead of the release of industrial output numbers for April. The Sensex added five points to its previous close to open at 18,390 and the Nifty was at 5,518, down three points. The market soon touched the day's high with the indices at 18,399 and 5,521, respectively.
The indices stayed in negative terrain and drifted further southwards after the release of disappointing industrial numbers for April, another indication of a slowdown in the economy. The focus will now shift to the Reserve Bank of India's mid-quarter policy review next week, to see how the central bank tackles rising inflation and slowing growth. The market touched the intra-day low at around 1.50pm, with the Sensex at 18,183, a fall of 202 points, and the Nifty erased 64 points to 5,457.
The indices made a half-hearted recovery in the last hour but settled lower on the last trading day of the week. The Sensex closed trade at 18,269, down 116 points and the Nifty lost 35 points at 5,486.
The Nifty is now in a downtrend with the first support at 5,415. And if it breaches this level, we can expect the market to fall to around 5,350.
The advance-decline ratio on the National Stock Exchange was a negative 591:1050.
Although the broader indices stayed in the red, they outperformed the Sensex in trade. The BSE Mid-cap index fell by 0.34% and the BSE Small-cap index was 0.46% lower.
The BSE Consumer Durables index (up 0.47%) was the lone gainer in the sectoral space. The top losers were BSE Capital Goods (down 1.08%), BSE Fast Moving Consumer Goods (1.04%), BSE Realty (down 0.80%), BSE Metal (down 0.73%) and BSE PSU (down 0.67%).
Maruti Suzuki (up 1.03%), Hindalco Industries (up 0.74%), ONGC (up 0.64%) and TCS (up 0.37%) were the major gainers on the Sensex. DLF (down 1.83%), ITC (down 1.69%), Larsen & Toubro (down 1.64%), Reliance Infrastructure (down 1.52%) and Tata Steel (down 1.36%) were the top losers.
The top Nifty gainers were Hindalco (up 0.87%), Cairn India (up 0.64%), ONGC (up 0.62%), Ranbaxy (up 0.41%) and TCS (up 0.31%). The Nifty losers were led by Grasim (down 2.24%), DLF (down 2.19%), Reliance Capital (down 1.90%), L&T (down 1.85%) and Reliance Infra (down 1.69%).
India's industrial growth rate shrunk by more than half to 6.3% in April, mainly on account of a poor showing by the manufacturing and mining sectors, a development that the government described as 'disturbing'.
The declining factory output may increase pressure on the Reserve Bank of India (RBI) to have a relook at the tight monetary policy which it has been pursuing since March 2010, to check rising prices.
Markets in Asia settled mostly lower on Friday, following news of a rate hike by the South Korean central bank and a slowdown in Chinese exports growth in May. The Bank of Korea's monetary policy committee increased the 7-day repurchase agreement rate to 3.25% despite signs of a slowing economy and risks from the euro zone. Chinese exports rose by 19.4% in May from a year earlier, slowing from the 29.9% pace in April, while imports went up by 28.4% from 21.8% in April.
The Hang Seng declined 0.84%, the Jakarta Composite fell by 0.49%, the Straits Times retraced 0.62%, the Seoul Composite tanked 1.19% and the Taiwan Weighted tumbled 1.81%. On the other hand, the Shanghai Composite added 0.10%, the KLSE Composite rose 0.34% and the Nikkei 225 ended 0.50% higher.
Continuing their tepid participation in the stock market, foreign institutional investors were net sellers of stocks worth Rs24.73 crore on Thursday, whereas domestic institutional investors were net buyers of stocks worth Rs8.97 crore.